Original Research Article | OPEN ACCESS
Forensic Audit and Fraud Detection and Prevention in the Nigerian Banking Sector

E. Uniamikogbo A. S. Adeusi2 U. C. Amu3

1Department of Accounting, Rhema University, Aba, Abia State, Nigeria; 2Department of Accountancy, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria; 3Department of Financial Management Technology, Federal University of Technology, Owerri..

For correspondence:-  E. Uniamikogbo   Email: uniamikogbo_emmanuel@rhemauniversity.edu

Received: September 30, 2019        Accepted: September 21, 2019        Published: September 30, 2019

Citation: Uniamikogbo E.Adeusi AS.Amu UC. Forensic Audit and Fraud Detection and Prevention in the Nigerian Banking Sector. Account Tax Rev 2019; 3(3):121-139 doi:

© 2019 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..


This study examined the impact of forensic audit on fraud detection and prevention in the Nigerian banking sector. The study took a census of the 16 Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange (NSE) as at 31st December, 2016. The study used the secondary source to collect data from the Nigerian Deposit Insurance Corporations’ (NDICs) annual reports of 2013 and 2016 respectively. The study covered a period of five (5) years spanning 2012-2016. Data generated were analyzed using charts, graphs, tables and regression. Our findings revealed that forensic audit has a significant negative impact on number of fraud cases, number of staff involved in bank fraud, and actual amount of bank losses through fraud in the Nigerian banking sector. However, forensic auditing has insignificant impact on expected losses generated through fraud activities in the Nigerian banks. This study recommends that banks in Nigeria should intensify the application of forensic auditing in the fight against fraud and forgeries in the system. Also, forensic auditing should be focused on detecting number of fraud as well as staff involvement in the Nigerian banking sector. Staff welfare and remunerations should be prioritized since staff are strategic in the prevention of fraud in any organisation, including the banks in Nigeria.  

Keywords: Forensic audit, fraud detection, fraud prevention, banking sector, Nigeria.

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